The Right Way To Set Goals for Growth: How to Eat an Elephant, One Atomic Concept at a Time

The Right Way To Set Goals for Growth: How to Eat an Elephant, One Atomic Concept at a Time

Setting goals for growth is crucial for any company or platform. However, it's important to approach goal-setting in the right way to ensure success. One key aspect is setting absolute goals, such as the number of active users and the decrease in churned users. These absolute numbers are what truly matter in measuring growth. It's essential for teams to take credit for what they do, rather than relying on natural occurrences. For example, if a company focuses on growing traffic in a lower converting country instead of a higher converting country, they may hit traffic goals but not signup goals.

When it comes to growth, it's also important to understand the concept of atomic concepts. Without a large enough user base, a new platform will struggle to attract developers and build an ecosystem of add-ons to meet user needs. This is why platforms are so enduring—they have a higher-level understanding of the components and variants that users require. Additionally, as customer needs change, the types of users and use cases for a product may also change. This leads to the emergence of new atomic concepts that thrive in these market transitions.

The best products are those that align with the way customers think about their workflows. They match the abstraction level of their customers, making them easy to use and extend in more complex ways. For example, Figma builds on Sketch's approach by focusing not just on projects, but on the entire collaborative process. Canva, on the other hand, provides different templates and components to help users easily accomplish their tasks. These new workflows and different customer types often have different priorities than existing customers, and it's the changed atomic concepts that make startups compelling contenders against incumbents in the market.

However, companies often face challenges in adapting their core product for new use cases. It can be costly in terms of work, money, and attention. But every once in a while, a small use case grows into one large enough to support its own company. This requires a shift in mindset and a willingness to embrace change. Building out products to enable collaboration, for example, can lead to rethinking pricing models, distribution models, and sharing form factors. Companies like Figma and Canva have successfully navigated these challenges, leading to their growth and success in their respective markets.

One important aspect of building a successful platform or company is the power of community. Treating marketplaces as first parties and creating ecosystems around the core product can have numerous benefits. It increases the value of the product, cements platform network effects, and addresses the varied needs of customers. Companies often underestimate the complexity and opacity of their products to outsiders. Clarity is crucial not only for users but also for employees. It helps unite people and prevent future deviations or issues.

To ensure clarity and success, it's important for founders and companies to regularly refactor their atomic concepts and simplify their narratives. Just as companies accumulate technical debt, they can also accumulate narrative debt. Simplifying and refining atomic concepts allows for better transmission of ideas and empowers customers. Additionally, building a platform that allows individuals or companies to build their own plugins or extensions strengthens the ecosystem and enables niche parts to be covered.

In conclusion, setting absolute goals and understanding atomic concepts are key to achieving growth. Companies should focus on measurable metrics such as active users and churned users. Adapting to changing customer needs and embracing new atomic concepts can make startups competitive against incumbents. Building a strong platform and fostering a community around the core product can lead to increased value and success. Regularly refining and simplifying atomic concepts ensures clarity and prevents narrative debt. By following these actionable advice, companies can set themselves up for growth and success in their respective markets.